Monday, November 9, 2020
For most of the past 160 years, the ratio of price between two of the most widely followed commodities - gold and oil - has been fixed in a relatively tight range…until this year.
Analysts at the site ‘Visual Capitalist’ showed historically the ratio of the price between an ounce of gold and a barrel of oil has reliably ranged from 10:1 to 30:1. However, this year, that ratio blasted higher to 90:1.
Traditional thought is that gold acts as a “safe-haven” investment that appreciates in price during tumultuous economic and financial times. At the other end of the spectrum is oil which tends to rise and fall with the global economy and geopolitical concerns. Given that the current ratio is at unprecedented levels, analysts are not quite sure what to make of it.
Add it to the list of the many unique facets of 2020.
Best regards,
Womack Investment Advisers, Inc.
WOMACK INVESTMENT ADVISERS, INC.
Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK 73013
California Office: 4660 La Jolla Village Dr., Ste. 100 - San Diego, CA 92122
Phone (405) 340-1717 - Toll Free (877) 340-1717